USD/JPY: lower lows favor additional declines ahead

Valeria Bednarik FXStreet

USD/JPY Current price: 107.07

USD/JPY still stuck around 107.00, key support at 106.20.
Japanese Industrial Production's growth decelerated in February.

The USD/JPY pair is still unable to find a way, although this Tuesday it trades lower in range. The pair fell to 106.87 on broad dollar's weakness, now recovering some ground. Data coming from Japan was soft, as Industrial Production grew at a slower-than-expected pace in February, flat for the month and up by 1.6% YoY, well below the expected 2.3% advance. The pair remains afloat amid the positive tone of worldwide equities, but demand for the greenback is restricted. Yields remain steady around Monday's close, providing no clues to the pair.

Ahead of US data releases, the short-term picture for the pair is bearish, as despite developing above its 100 and 200 SMA, technical indicators maintain their downward slopes below their mid-lines. The 100 SMA offers an immediate dynamic support around 106.60, and once broken, the pair has room to extend its decline toward 106.20. The lower lows daily basis favor a new leg lower, moreover considering that the market is unwilling to jump into the dollar. The upside seems quite messy, as the pair has multiple intraday highs between 107.50 and 107.90, and there's no background for a rally through this last.

Support levels: 106.90 106.60 06.25

Resistance levels: 107.50 0 107.90 108.20

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.